Beijing China (March 19, 2008) – Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator in China, today announced it recently entered into an agreement for the purchase of the premises with an area of approximately 55,000 square meters in Chaoyang District, Beijing. The aggregate purchase consideration is approximately RMB700 million, 55% of which is required to be paid in the first quarter of 2008, while most of the remaining consideration is expected to be paid in the second quarter of 2008. The premises will be used as the Company's new principal office to meet the demand arising from the Company's recent business expansion and headcount increase. Perfect World will acquire the premises after completing relevant real estate registration procedures.
"I am pleased with the recent growth of our business and our future prospects resulting from the effective execution of our growth strategies," commented Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World. "Growth comes with necessary increases in staff and office space and we expect this to continue for the foreseeable future. The centralized new office space is expected to enhance our ability to execute our core strategies with a focus on highly efficient and timely developments. After careful evaluation of our future needs, we believe that our best course of action is to secure office premises and enter into this particular transaction. I am confident that we are still able to maintain a healthy balance sheet and strong and consistent operations."
About Perfect World Co., Ltd. (http://www.pwrd.com)
Perfect World Co., Ltd. (NASDAQ: PWRD) is a leading online game developer and operator in China. Perfect World primarily develops three-dimensional ("3D") online games based on the proprietary Angelica 3D game engine and game development platform. The Company's strong technology and creative game design capabilities, combined with extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games designed to cater to changing customer preferences and market trends in China. The Company's current portfolio of self-developed 3D massively multiplayer online role playing games ("MMORPGs") includes "Perfect World," "Legend of Martial Arts," "Perfect World II", "Zhu Xian" and "Chi Bi." The Company uses a time-based revenue model for "Perfect World," and an item-based revenue model for "Legend of Martial Arts," "Perfect World II", "Zhu Xian" and "Chi Bi." While most revenues are generated in China, the Company's games have been licensed to leading game operators in more than ten countries and regions. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.
Safe Harbor Statements
This press release contains forward-looking statements. These statements constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "future," "plans" and similar statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, our limited operating history, our ability to protect our intellectual property rights, our ability to respond to competitive pressure, and changes of the regulatory environment in China. Further information regarding these and other risks is included in Perfect World's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1. Perfect World does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
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Perfect World Co., Ltd.
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